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A company has the following capital stock outstanding: preferred shares of $15,000, common shares of $30,000,

retained earnings of $100,000. Preferred dividends in arrears amount to $5,000. There are 10,000 common shares and 1,000 preferred shares issued. What is the book value one share of preferred stock?

a.    $12.50

b.   $20 

c.    $105

d.   $125

Top Answer

Book value of preferred stock is calculated by dividing the sum of call price/redemption value and... View the full answer

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